open navigation close navigation Menu

Going Public in London Via IPO: A Strategic Move for Your Company

 

In today's dynamic business landscape, companies are constantly seeking ways to expand their horizons, attract investment, and increase visibility. One strategic avenue to achieve these goals is through an Initial Public Offering (IPO), and London stands out as the leading destination for companies looking to go public. 

In this article, we'll delve into the reasons why going public in London is the smart decision, factors to consider before taking the plunge, and why Equiniti is the ideal partner to guide you through this transformative journey.

The London Stock Exchange offers a diverse range of markets, serving as a regulated platform for companies seeking equity finance. It uniquely caters to the needs of the companies aiming to go public, facilitating landmark moments like the IPO. Whether marking a new phase in a company’s life cycle or providing an exit opportunity for early investors, going public signifies a significant milestone requiring meticulous planning and navigation.

Our top 5 reasons for companies to go public in 2024

 

  1. Access to Capital: Going public opens the doors to a vast pool of capital from institutional investors, enabling companies to fuel growth, invest in innovation, and pursue strategic initiatives.

  2. Enhanced Visibility and Prestige: Listing on the London Stock Exchangeor AIM market elevates a company's profile, increasing visibility among potential customers, partners, and stakeholders. It also enhances credibility and trust in the eyes of investors and the public.

  3. Enhanced Management Understanding: The management team will have been through a thorough due diligence process in connection with the IPO, which will invariably lead to a greater understanding of the company and the markets in which it operates. This process not only strengthens internal operations but also enhances the management team’s ability to make informed decisions, adapt to market dynamics and drive sustainable growth post-IPO. It fosters a culture of accountability, transparency, and strategic alignment, setting the stage for long-term success in the public markets.

  4. Liquidity and Exit Strategy: Going public provides shareholders with liquidity, allowing them to monetise their investments. Moreover, it offers a clear exit strategy for early investors and founders, unlocking value and facilitating succession planning.

  5. Currency of M&A: Publicly traded companies often have an advantage in mergers and acquisitions, as they can leverage their stock as a currency for strategic transactions, providing flexibility and facilitating growth through acquisitions.


Four factors to consider before going public:

  • Market Conditions: Assess the current market environment, including investor sentiment, economic outlook, and industry trends, to determine the optimal timing for your IPO.

  • Corporate Governance: Ensure robust corporate governance practices are in place to instil confidence in investors and comply with regulatory requirements.

  • Financial Performance: Evaluate your company's financial performance, growth trajectory, and profitability to demonstrate its attractiveness to prospective investors.

  • Legal and Regulatory Compliance: Understand the regulatory landscape and compliance requirements associated with going public, including listing rules, disclosure obligations, and governance standards.


Areas to Focus on for IPO Readiness

  • Financial Reporting and Disclosure: Prepare comprehensive financial statements and disclosures in accordance with regulatory standards to provide transparency and insight into your company's financial health and performance.

  • Corporate Structure and Governance: Streamline your corporate structure, establish effective governance mechanisms, and appoint experienced directors to strengthen oversight and accountability.

  • Investor Relations and Communication: Develop a robust investor relations strategy to engage with stakeholders, manage expectations, and effectively communicate your company's value proposition and growth prospects.

  • Operational Readiness: Ensure operational readiness across all facets of your business, including systems, processes, and controls, to support the demands of being a publicly traded company.


Why Equiniti?


Choosing the right partner is crucial to the success of your IPO journey, and Equiniti emerges as the premier choice for share registrar and specialist corporate advice. With a proven track record of guiding companies through the IPO process and beyond, Equiniti offers unparalleled expertise, technology, and support to navigate the complexities of going public.

  • End-to-End Solutions: Equiniti provides end-to-end solutions tailored to your unique needs, encompassing share registration, Employee Share Plan Administration, investor relations, governance services, and corporate actions, ensuring seamless execution and compliance throughout the IPO process.

  • Expertise and Experience: With decades of experience in the capital markets and a team of professionals focussed on delivering your IPO seamlessly, Equiniti brings deep expertise and insights to help companies navigate the nuances of the IPO journey, mitigate risks, and maximise value creation.

  • Technology and Innovation: Leveraging cutting-edge technology and innovative solutions, Equiniti empowers companies with advanced tools and analytics to optimise shareholder and employee engagement, streamline operations, and drive long-term success in the public markets.

  • Dedicated Support: Equiniti's dedicated client service teams are committed to providing personalised support and guidance every step of the way, ensuring a smooth and successful transition to the public markets and ongoing excellence in shareholder management.


In conclusion, going public in London presents a compelling opportunity for companies seeking growth, visibility, and access to capital. With a plethora of benefits and cross-party political support, makes London a welcoming place to develop businesses and help them to unlock the necessary funding to grow.

By carefully considering the factors outlined above and partnering with Equiniti as your trusted advisor, you can embark on this transformative journey with confidence, knowing you have the expertise, support, and resources needed to succeed in the public markets.

To read this article on the London Stock Exchange and view our profile with more content, please follow this link.

Are You Registered For EQ Bulletin?

We work with experts from across EQ to bring you a summary each month of what is happening within the financial services industry that impacts the share registration and employee share plans space. Register below to receive our monthly update.

SIGN-UP NOW MORE ABOUT EQ SHAREHOLDER SERVICES

share-xx